Fair Housing
Which of the following properties is generally EXEMPT from the federal Fair Housing Act?
AA 50-unit apartment building
BAn owner-occupied building with no more than four units where the owner resides in one unit (Mrs. Murphy exemption)✓ Correct
CA single-family home listed with a real estate agent
DA condominium complex with 10 units
Explanation
The 'Mrs. Murphy' exemption allows an owner-occupant of a building with four or fewer units to select tenants based on personal preferences, provided no broker is used and no discriminatory advertising is placed.
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Key Terms to Know
Fair Housing Act
Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
SteeringAn illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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